Steel Industry Truths

Steel Industry Truths

TRUTH #1 – Chinese Steel

Has not been coming into the US for several years. There were anti-dumping duties on sheet and plate products out of China before the 232 Tariffs.

TRUTH #2 – 232 Tariffs

Anti-dumping and anti-circumvention duties were in place before the 232 Tariffs. Many countries had high duties on them for dumping and could not sell competitively into the US.

TRUTH #3 – Exempted from 232 Tariffs

South Korea is the only country permanently exempt. They struck a 1 on 1 deal with President Trump to get the exemption.

President Trump decided not to renew exemptions for the EU, Canada and Mexico. He wants these countries to buy more from the US and bring the trade imbalance in line.

Truth #4 – Mexico and Canada

Mexico is the only decent supplier of sheet and plate into the Houston area. With the expired exemptions, there are now active tariffs on steel from Canada and Mexico.

Truth #5 – Where Galvanized Is Coming From

Most galvanized has been coming from Taiwan and Vietnam. Although they are not exempt countries. Tariffs are being applied to galvanized coil and to future orders.

Some galvanized is coming from Mexico, but their supply will be hurt with applied tariffs.

Truth #6 – Where Stainless Is Coming From

Most stainless has been coming from Taiwan and India. And most new offers are coming out of there also. Taiwan and India are not exempt countries – tariffs are being applied to present and future orders.

Truth #7 – Where Foreign Hot Rolled Is Coming From

  • Turkey until they pulled out of the market early this year
  • Egypt until they pulled out of the market last month, but are now back in the market with the tariff applied
  • France, but they are not competitive
  • South Korea is aggressively selling after negotiating a permanent exemption
  • Mexico canceled a lot of orders early this year. Shipments have been unreliable out of Mexico. With tariffs in effect, it will be harder to get at a competitive price

Truth #8 Higher Prices Here To Stay

Higher prices are here to stay and we need to get used to and adjust to the new normal of steel prices.

It is best to go with a proven expert in their field. Call us if your company requires a secure supply of stainless, aluminum, cold-rolled or galvanized sheet metal.

We can help you with any stocking requirement level. From a few skids to hundreds of tons. We will help you schedule out the material you need to meet production without shortages.

CALL NOW 832-300-1030.